U.S.-Arab Chamber of Commerce Expresses Concern about “Chilling Effects” and “Double Standards” in Dubai Ports World Standoff

WASHINGTON, DC — During a CNN International interview this week, David Hamod, President and CEO of the National U.S.-Arab Chamber of Commerce (NUSACC), expressed concern about the apparent double standards that some U.S. policymakers are applying to Dubai Ports World (DPW) in its efforts to assume logistics operations at six U.S. seaports.

Hamod told CNN, “If this were Singapore, China, Japan, Denmark or some of the other [foreign] carriers that do logistics in the U.S. ports, would they be going through the same scrutiny?” NUSACC is concerned that some politicians are grandstanding in an election year and singling out DPW because it is an Arab-owned company. Hamod cautioned, “The United States needs to be very careful that this situation does not become an exercise in Arab-bashing, with Members of Congress fanning the flames of anti-Arab hysteria.”

In another interview, Hamod stated, “DPW played by the rules and won fair and square. Now some politicians want to move the goal posts. Inconsistencies like these send exactly the wrong message to foreign investors, and we are concerned that this debacle will have a ‘chilling effect’ on prospective investment in the United States. Capital is a coward, and if investors around the world get the sense that routine business deals here will require forays into domestic American politics, they will turn their backs on the United States.”

According to NUSACC, this is especially true of Arab investors since the year 2001. In the aftermath of 9/11, there was massive capital flight from the United States by Arabs who felt -- and continue to feel -- that they as an entire people are being held responsible for the actions of a handful of terrorists. The DPW episode exacerbates the perception among Arab business leaders that there is widespread anti-Arab racism in the United States.

When it comes to the United States practicing what it preaches, the DPW affair highlights another apparent double standard. The U.S. has been encouraging Arab nations to adopt laws that will promote the free flow of goods, services, capital, people, and ideas across national boundaries. This policy is clearly out of sync with the strong protectionist message now coming out of the U.S. Congress. Ironically, the United Arab Emirates is at the top of the list of Arab nations that are being urged to sign a Free Trade Agreement (FTA) with the United States.

Concludes Hamod, “There is no question that our nation’s security is paramount. But strong commitments to homeland security do not justify double standards or racial discrimination toward foreign investors. If our country cannot abide by rules consistently, and if we cannot adhere to a single standard that applies to all, then savvy investors will simply take their money elsewhere.”

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Emphasis Added
Spot on overall sentiments.